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Upper Arlington, Ohio Forges Ahead with Public Partners on City-wide Fiber-Optic Network

The City Council of Upper Arlington, Ohio on Oct. 26 approved several contracts that will enable the community to build a municipal fiber-optic network to key anchor institutions for an estimated $2.5 million.

Upper Arlington’s project will provide high-speed Internet service for the city’s buildings, the Public Library, Upper Arlington city schools, and most city parks according to a news report from the Upper Arlington News. The 30-mile fiber network will serve about 40 locations around the boundaries of the city (population 34,000).

Besides establishing better connectivity between the three public partners’ buildings, the network is expected to provide opportunities for commercial companies to lease telecommunications services. The network would allow the city to lease some of the 288 fiber strands to commercial companies, such as other Internet Service Providers (ISPs).

Financing and Break Even

Under the cooperative arrangement, the library will contribute $17,616 annually, the city $68,484 per year and the school district $177,900 each year until the project is paid off. “These costs are derived from the amounts that each entity is currently paying for leased broadband connectivity between their facilities,” Upper Arlington Assistant City Manager Dan Ralley told us. 

The period anticipated to pay off the network construction is nine years with the school district and library able to extend the parties’ shared-services agreement for an additional 15 years after. The extensions would occur in three five-year segments.

Cost savings, broader bandwith

Ralley says the primary benefits of the new city fiber-optic network will be significantly lower long-term bandwidth and broadband access costs.  For example, the city of Upper Arlington expects to save about $1,280 a month for Internet service by building its own fiber network. Over 10 years, the city’s savings would total about $150,000.

And the municipal network will be a boon for the Upper Arlington public schools. In an Oct. 19, 2015 staff report, Ralley said:

Upper Arlington Schools’ available bandwith capacity is a growing concern given the current and future 21st century learning initiatives that are premised upon the use of technology. With increased bandwith between buildings, the potential for ubiquitous computing is possible along with more collaborative learning tools delivered through online learning management systems.

Network will enable access to two major data centers

Another benefit: the new network will enable Upper Arlington to “gain direct access to two different data centers located on the periphery of our community,” Ralley told us. Those are “the Ohio Supercomputing Center and a private facility owned by Expedient that will allow us to locate our servers in a carrier neutral facility that has redundant power feeds and lower broadband access costs,” he noted. 

“Expedient can provide the City an internet connection of 30 Mbps which is burstable to 100 Mbps at a much lower cost than our current provider,” Ralley said in his Oct. 19 staff report. 

New network incentive for economic development

Not to be overlooked, Upper Arlington’s new fiber-optic network is also expected to boost the community’s desirability for economic development.

“The number of businesses that are looking for access to affordable, high bandwith is increasing,” Ralley said in his staff report. He added:

While Upper Arlington does not have a large number of businesses that would typically utilize fiber optic data connections, we have attractive commercial development areas where access to available fiber can be used to attract businesses that require large bandwith. The City could leverage the community fiber optic network for economic development incentives or use it to help lower the cost of operating a business in UA, thereby providing a competitive advantage.

In one case, the city will be providing dark fiber to a new Ohio State University Medical facility that is currently under construction, Ralley told us. That arrangement is a condition of a $500,000 grant that the state of Ohio has given Upper Arlington to build its fiber-optic network. Dark fiber, fiber-optic cable currently not in use, is particularly important for medical centers because it offers more control over network quality and allows for very fast networks at affordable budgets. 

Also the city will be entering into an IRU (Indefeasible Right of Use) with the fiber construction contractor Thayer, that will enable them to market and sublease fiber strands by other third parties, he said.

Given the direction of the Upper Arlington broadband network, the community will be getting a system that will have many potential benefits but little risk with the city serving as its anchor tenant.

Self-Financed EC Fiber Continues to Grow - Community Broadband Bits Podcast 177

Carole Monroe is back on Community Broadband Bits for Episode 177 this week, to discuss the East Central Vermont Fiber network and its unique financing model. Carole is now the General Manager for EC Fiber. She previously joined us for episode 36 to discuss Fast Roads in New Hampshire. And we previously discussed EC Fiber with Leslie Nulty in episode 9.

Years later, EC Fiber is approaching 1,200 subscribers in rural Vermont and is growing much more rapidly with some open access dark fiber connections created by the state in a specific effort to enable last mile connectivity.

We discuss the impact on the community, how much people in rural regions desire high quality Internet access rather than slow DSL, and also a brief mention of some progress in New Hampshire to expand the Fast Roads network.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 21 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can can download this Mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music, licensed using Creative Commons. The song is "Warm Duck Shuffle."

Audio Available: Financing Fiber for the New Economy Conference in Lexington

At a September conference in Lexington, Kentucky, Next Century Cities (NCC) hosted an influential and diverse group of leaders from the municipal broadband arena to share their experiences as leaders in community broadband. Four audio recordings, which you can find on NCC’s website, include panel discussions on a variety of issues surrounding the topic of financing for next generation broadband.

Recording #1: “Lexington Mayor Jim Gray and the Kentucky Wired Story”

In the first recording, Lexington Mayor Gray and the city’s Chief Information Officer discuss their ongoing efforts to make Lexington a gigabit city. These efforts are part of a broader initiative also discussed on building a statewide 3,000 mile fiber optic ring. Several Kentucky government leaders make remarks about the project, called Kentucky Wired, including their thoughts about the public-private partnership model that is helping make the project possible.

Recording #2: “Achieving the Last Mile

Our own Christopher Mitchell, the Director of the Community Broadband Networks Initiative at ILSR and the Policy Director for Next Century Cities, moderates this panel that includes officials who have led municipal broadband initiatives in their communities. These officials share some of the challenges they have faced and solutions they discovered in their efforts to finance last mile infrastructure.

Recording #3: “Exploring Options and Approaches for Broadband Financing”

Scott Shapiro, the Senior Advisor to the Mayor of Lexington Kentucky, moderates the panel discussion that includes a group of people with varied knowledge and perspectives on the community broadband issue.  They discuss models and approaches communities can use to finance their broadband networks, with a particular focus on the public-private partnership model.

Recording #4: “Federal Support for Broadband Projects” 

Hilda Legg, former Rural Utilities Service Administrator and current Vice Chair of Broadband Communities, leads a panel of several experts examining funding supports and offering recommendations and next steps for communities.

If you could not make the conference or if you need a refresher on information you found compelling, this is your opportunity to revisit the discussion.

Sanford, Maine Plans Largest Municipal Network in the State

A lot has happened in Sanford, Maine since our last report on their municipal fiber optic network discussions. After a year of deliberations over different proposals, the city recently announced plans to begin building a 32-mile municipal fiber-optic network.

The city of Sanford is inside York County, situated about 35 miles southwest of Portland. The network will provide connectivity to businesses, government entities, non-profit organizations, and residences in Sanford along a limited route where there is sufficient customer density. City leaders plan to also provide a foundation for future expansion of the network to additional residential areas in the city. The network will be open access, allowing multiple ISPs to provide services via the publicly owned infrastructure.

The city will partner with Maine-based company GWI (Great Works Internet) to operate the network. Readers may recognize GWI as the same company working with Rockport, Maine's first community to invest in a municipal fiber network.

Once they complete the buildout, Sanford will be in an elite class of a just few cities nationwide that provide widespread access to 10 Gbps broadband. It is a bold plan for this city of just over 20,000 in a state that last year ranked 49th in the nation in average broadband speeds.

The Sanford Regional Economic Growth Council, a major driving force behind the project, sees the project as critical to their broader economic development efforts:

Like the growth council, this project is a public-private partnership stemming from the exploration of a best business model allowing for municipal investment and input while leveraging the strengths and expertise of private sector for-profit business. The growth council recognizes the collaboration of the public private partnership as the best means to accomplish the City’s economic development strategies.

The new network is also the first major loop in Maine that will connect to the state’s existing Three Ring Binder network. Constructed in 2012, the middle-mile Three Ring Binder spans 1,100 miles around much of Maine. The network was a product of private investments and $25 million in stimulus money from the 2009 American Recovery and Reinvestment Act

According to a study commissioned by the Economic Growth Council, the network could generate between $47 million and $192 million in economic benefits over the next decade. The Economic Growth Council and the the city are still seeking funding to build the network, estimated at $1.5 million. The city expects to cover costs through agreements they’re pursuing with anchor institutions and savings they'll see by eliminating the cost of leasing lines to city government buildings and schools.

The city is also considering Tax Increment Financing (TIF), a process we described in a previous article about another network using the process:

“Tax Increment Financing (TIF) is a method of public financing that uses future gains in property or sales taxes within a defined area to subsidize a redevelopment or infrastructure project. A local jurisdiction can borrow money up front, build the project, and then use the increased tax receipts it generates to pay off the debt over a period of years. The concept is actually pretty simple: capture the value that something will have in the future to build it now.”

A small number of municipal broadband projects have been funded with TIF, but this arrangement can be controversial as it removes substantial property value from the general taxbase. Most choose revenue bonds, interdepartmental loans, or by redirecting savings gained when city can build incrementally thereby avoiding payments for leasing lines from providers. Fortunately, Maine remains one of the states where local communities have the freedom to choose whether or not they invest in Internet networks and how they finance such a project.

At the meeting to announce plans for the network, U.S. Senator from Maine, Angus King, summed up the network's importance to the state's future:

“High-speed broadband is a gateway to economic and educational opportunity in the 21st century,” King said. “But right now, there are too many people who are denied those opportunities simply because they don’t have adequate Internet access.”

Peachtree City, Georgia Approves Resolution to Establish Municipal Broadband Utility

At a September meeting, the City Council in Peachtree City, Georgia unanimously approved a resolution to construct and operate a fiber-optic broadband network.  According to the City Council minutes from the meeting, the initial 22.54-miles of fiber will provide 1 Gbps broadband access to various facilities in the City Service area.

In addition to providing connectivity for government buildings, utility services, and medical and educational buildings, the city will target business customers in the “high end user category.”

Officials estimate the network will cost $3.23 million. To pay for the project, the Peachtree City Public Facilities Authority, an independent local government authority created by the state legislature in 2011, will enter into an intergovernmental agreement with Peachtree City. According the August 2015 Fiber Initiative plan, capital for the project will come from the Authority; the city will issue a bond and pay installments to the Authority under an Agreement of Sale.

For several years now, the city located 30 miles southeast of Atlanta has explored options to improve local connectivity. City leaders tried and failed to bring Google Fiber to the community of 35,000 people in 2010. The city attempted repeatedly to urge private ISPs like AT&T to address the problem with no success. In February of this year, city leaders began work on a study to explore the feasibility of a publicly owned fiber network.

City Council members citizens at the recent City Council meeting expressed concerns that the network will not pay for itself and taxpayers will be left to cover unpaid costs. According to a recent survey of local businesses, 100% of respondents reacted positively to the prospect of a municipal network for connectivity.

In order to achieve the plan’s objectives, the network will need 12 “high-end” commercial customers by the end of year 2.  The city’s consultant expressed confidence in meeting that first goal:

“If we had a different experience, I would be standing up here in front of you saying 12 is going to be a stretch. However, we found exactly the opposite to be the case,” said Davis. “I was amazed by that. It’s a surprise to me that the demand was so great, and that the existing customer base out there was so positive about becoming a user. From a pure business standpoint, that gave me a lot of confidence to come in and say I believe we can hit this number and I believe we can exceed this number.”

The city’s Financial Services Director Paul Salvatore added that the business plan for the project is based on conservative assumptions.  It relies on a 20-year financial model projecting success for the network if the city secures at least 12 non-governmental customers in addition to 17 serviceable government sites. Thereafter, if it reaches at least 19 total non-governmental customers by year 6, the network will start to achieve positive gains, a 10-year bond payoff, and profitability after 16 to 20 years.  

City officials have no plans to bring the network to residential subscribers at this stage, choosing instead to focus on direct and indirect economic development benefits, public safety improvements, and better cell phone coverage that will likely result from the fiber deployment. They did not rule out the prospect of fiber for residents in the future. (Watch a complete video of the September 17th City Council meeting here, the city’s municipal broadband network discussion starts at 28:20.)

At a workshop earlier in September, city leaders met with the consultant to finalize the business plan for the network. At the meeting, Interim City Manager Jon Rorie quizzed the City Council about the risks involved with investing in the new broadband network. By the time the City Council met 9 days later, Rorie was convinced of the plan’s prospects for success: 

“We recognize this is a big decision, and it is of a visionary nature, but we also recognize that there is a risk exposure as a business model,” he said. “As far as providing an opportunity from an economic development perspective, I do think it is a huge opportunity as we move forward.

Muni Fiber in Idaho Helps 911 Dispatch and First Responders - Community Broadband Bits Episode 173

Ammon, Idaho, continues to quietly build a future-looking open access fiber network. Though the City won't be providing services directly to subscribers, the network it is building and the model it has created could revolutionize public safety.

I just spent several days with them shooting our next video on community fiber networks (look for that in January). In episode 173 of our Community Broadband Bits podcast, we talk with City Technology Director Bruce Patterson and Systems Network Administrator Ty Ashcraft.

Bruce explains how they plan to finance the network as it moves from the current residential pilot phase to being available broadly to any residents that want to connect, likely using a local improvement district model. Then Ty tells us about the portal that subscribers will be able to use to instantaneously pick and change service providers offering various services.

Additionally, we talk about the public safety implications of their technological and collaborative approach, specifically around the horrifying prospect of an armed shooter in a public space like a school or mall.

Read the transcript from this episode here.

We spoke with Bruce about Ammon's plans previously in episode 86. Read all our coverage of Ammon here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

RS Fiber Cooperative Breaks Ground

Six years after an initial feasibility study was conducted to assess bringing broadband to Renville and Sibley Counties in southeastern Minnesota, members of the RS Fiber Cooperative board were finally able to dust off their shovels for a groundbreaking ceremony on July 9. Although those shovels may have ended up being more symbolic than they were practical, the ceremony marked an important and long-awaited step in the fight to extend broadband to 10 cities and 17 rural townships across the largely agricultural region.

The groundbreaking ceremony marked the start of stage one of a two-stage project that will take five to six years to complete. By the end of 2015, the RS (Renville-Sibley) Fiber Cooperative plans to connect 1,600 homes and businesses with fiber, with 90 percent of its service area covered by high-speed wireless. It hopes to connect another 2,600 homes and businesses by the end of 2016, with the eventual goal of reaching 6,200 potential customers. At the event, Toby Brummer, RS Fiber General Manager, highlighted the importance of broadband Internet to rural development:

This technology is to this generation what rural electric and rural telephone was to generations years ago.

The RS Fiber Cooperative is member-owned and member-driven, led by a Joint Powers Board that formed in 2009. In order to provide FTTH to the rural locations across the two counties, the cooperative partnered with a network operator, Hiawatha Broadband Communications, that already serves 17 communities in southeast Minnesota. RS Fiber will offer residential Internet speeds up to 1 gigabit for $129.95. It will also connect schools, bolster home and farm security systems, and even facilitate high school sports broadcasts and telemedicine initiatives.

The local governments each sold a General Obligation Tax Abatement Bond that in aggregate totalled $15 million that was loaned to the cooperative, which helped offset the cost of the initial phase of construction. It was a seed that allowed the coop to gather the rest of the necessary funding. The project’s overall funding includes both bonds and commercial loans from community banks.

Community Broadband Networks has followed the RS Fiber project closely as it jumped through several hurdles to create a financially sustainable plan to provide both urban and rural residents FTTH and fiber-to-the-farm services, respectively. ILSR highlighted the cooperative in its 2014 report - All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access. Chris also interviewed Co-op Vice Chair Cindy Gerholz and Winthrop Town Manager Mark Erickson last May in a Community Broadband Bits podcast.

Board members, according to a recent Gov Tech article, are hopeful that an osteopathic medical school that is coming to Gaylord will use the cooperative’s service.

Bringing broadband to rural communities like the ones in Renville and Sibley counties is critical to the future of the region. Without proper Internet access companies will not think of relocating to the area and when young generations leave, they will leave for good. As Vice Chair Gerholz told Chris:

One of the things that I'm looking at, too, for this whole project is that hopefully it will expand companies, and make invitations to companies, to come to this area. Which will then give more jobs for our kids, and keep our kids at home. Because we lose our kids. They go to college, and they're gone.

Enhanced broadband capacities will give those kids reason to stay, and make the region - which has experienced a steady population decline since the 1970s - economically competitive once again.

Danville's Incremental Strategy Pays Off - Community Broadband Bits Episode 166

Danville, Virginia, has long been one of the municipal network approaches that we like to highlight. Built in a region hard hit by the transition away from tobacco and manufacturing economies, the open access fiber network called nDanville has led to many new employers coming to town and has shown the benefits of a low-risk, incremental investment strategy for building a fiber network.

Jason Grey, Interim Utilities Manager, is back on the show to update us on their approach. He introduced the network to us three years ago on episode 22.

Since we last checked in, Danville has continued expanding the fiber network to a greater number of residents and Jason talks with us about the importance and challenges of marketing to residents. We also discuss how they lay conduit as a matter of course, even in areas they do not plan to serve immediately with the fiber network.

Read all of our coverage of Danville here.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

WiredWest Grows: Roster of Towns Up to 22

Momentum is growing in WiredWest territory and each town that votes takes on a fresh enthusiasm. New Salem is one of the latest communities to overwhelmingly support joining the municipal broadband cooperative. The Recorder reported that all but one of the 189 registered New Salem voters chose to authorize borrowing $1.5 million to move forward with the initiative. There are now 22 towns that have joined.

According to Moderator Calvin Layton, a typical town meeting draws 60 to 70 voters, far less than this one did. Apparently, investing in better connectivity is a hot button issue in places like New Salem, where Internet access is slow, scant, and expensive.

Poor connectivity has impacted local commerce and even driven some residents with home-based businesses away from New Salem. For Travis Miller, a role playing game designer, and his wife Samantha Scott, an IT professional, the town’s slow Internet speeds were holding them back so they moved away. In a letter to the New Salem Broadband Committee, Miller wrote:

A lack of broadband Internet service was one of the elements in our decision to move. A substantial online presence has become a basic requirement for successful table top game designers. Many of the platforms used to interact with fans and clients require broadband service. Our lack limits my income and makes further penetration into the market difficult if not impossible.

Adam Frost — owner of an online toy store, The Wooden Wagon — also found New Salem’s slow Internet speeds to be a limiting factor for his business. He said:

Though The Wooden Wagon is a specialty business, our needs are not unique: pretty much any business owner or person hoping to telecommute has the same requirements. Businesses outside the region with whom we work expect us to be at the same level technologically as they: they will not make concessions just because our Internet service is outdated. We must keep up, or be left behind.

Communities in western Massachusetts are each taking up authorization needed to cover their share of the connectivity project. All but one of 23 towns voting thus far have exhibited strong support. In Montgomery - that one town that did not support the proposal - the measure lost by only two votes, reported the Berkshire Eagle. Chesterfield and Goshen approved funding earlier this month, both to big crowds of voters. Leyden approved their participation at a meeting in May with a 90-33 vote.

Of the 45 towns eligible to participate and obtain state funding, 33 Select Boards have committed to presenting bond authorization measures before their voters. Monica Webb, Chair of WiredWest's Board of Directors told the Eagle in June:

"Ultimately, the overwhelming votes so far are a resounding affirmation that the citizens, businesses and institutions of Western Mass. towns underserved by broadband are ready, willing and eager to move forward with the WiredWest regional fiber network."

We spoke with Webb in May in episode #149 of the Community Broadband Bits podcast.

Local residents who were tired of dial-up and satellite established the cooperative as a way to band together and turn up the volume on their collective voice. Each community has representation on the executive board and will receive a share of state funding designated for the project.

At the meeting in New Salem, the town's Broadband Committee Chair MaryEllen Kennedy told told the audience:

“Our goal is to make this broadband available to every house, not just the places that are easy to wire, another reason we thought a government co-op was the way to go."

The next step in New Salem and in other Massachusetts communities where voters have approved borrowing is to hold a special town election to approve an exemption to Massachusetts' Proposition 2 1/2 tax levy limit.

Rural Rio Blanco County Builds Open Access Fiber, Wireless - Community Broadband Bits Podcast 158

Rio Blanco County is a large, rural county in northwestern Colorado that has two population centers. The county has a sharp plan for building FTTH to the population centers and wireless across most of the county to improve Internet access in a region the national carriers have little interest in.

In this week's episode, we interview county IT Director Blake Mobley, who has long been involved in improving Internet access for community anchor institutions in the area. We talk about their plan and how they are financing it (enabled in part by the Department of Local Affairs in Colorado - which has helped many community networks).

We also discuss many other aspects of what it takes to create a project like this -- including building trust among local stakeholders -- and their particular open access approach and terminology for the different layers in the stack of entities involved.

Finally, Blake tells us what they believe has to happen for the project to be successful. Read their vision statement here. Read our full coverage of Rio Blanco County stories here.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 23 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."